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Treasury Secretary Scott Bessent is calling on lawmakers to move forward with legislation establishing federal oversight for digital assets, renewing his push for a regulatory framework he says would keep cryptocurrency innovation and investment rooted in the United States.

Bessent is backing passage of the Clarity Act, a proposed crypto market structure bill intended to set national rules for the sector.

"The regulatory framework for digital asset markets is unclear," Bessent said in an op-ed published in the Wall Street Journal on Wednesday, adding that this uncertainty had ⁠predictable consequences.

He warned that firms are increasingly shifting operations overseas. "A growing share of crypto development relocated to places with clear rules, such as Abu Dhabi and Singapore. Abroad, firms knew when and how to register, what standards to meet, and how to operate. The benefits of domiciling in the U.S. rarely outweighed the risks," Bessent wrote.

The Clarity Act represents the culmination of years of lobbying from the crypto industry, which has long argued that existing rules do not adequately address digital assets and that formal legislation is needed to provide legal certainty for companies operating in the U.S.

However, progress on crypto market structure legislation has been stalled for months amid disputes between the banking sector and cryptocurrency firms over provisions governing interest and other rewards tied to stablecoins. Banking groups have pushed for language that would ban the practice.

The House of Representatives approved its version of the bill in July.

In February, Bessent said the proposal would provide "great comfort to the market" during a period of heightened volatility, adding that crypto firms had attempted to block the measure, while a bipartisan group of lawmakers continued to support its passage.